Privity of Contract Means That

question 8

Multiple Choice

Privity of contract means that:

• A)only parties with full contractual capacity can make a valid contract.
• B)contractual rights cannot be assigned to a third party.
• C)only the parties to a contract can acquire rights and liabilities under that contract.
• D)a valid contract must involve legal intention,agreement and consideration.

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Definitions:

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, essentially the benefits you could have received by taking another course of action.

EVA

Economic Value Added, a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Operating Income

This metric reflects the profits earned from a company's core business operations, excluding non-operating income and expenses.

Cost Of Capital

The essential return rate an enterprise has to produce on its investment activities to sustain its market assessment and appeal to investors.